The Bayworld and Happy Valley redevelopment is a megaproject for the Eastern Cape and seeks to transform 55 ha of under-utilised land spatially, socially and economically into an inclusive, new heart for Nelson Mandela Bay.
The goal of the programme is to enable multi-generational, multi-cultural and mixed-income group usages. The mission is to create a spectacular, iconic place that is the headquarters of the Nelson Mandela Bay eco-tourism and edutainment experience, rooted in the heritage and cultures of the Eastern Cape to drive conservation and economic development.
The Bayworld and Happy Valley programme focuses on the national imperatives of job creation and economic development while ensuring psycho-social development, conservation and education for the Eastern Cape. This is to be achieved by activating the potential of its unique biodiversity and intangible heritage to leverage the tourism industry.
The objectives of the Bayworld and Happy Valley programme are to:
Unlock the green, built and cultural heritage of the Eastern Cape.
Package the wealth of tourism offerings of the province and provide access to them through a digital experience of each and follow up with real in-person experiences.
Conserve the threatened biodiversity treasures of the region, both in the ocean and on land.
Drive an education, knowledge dissemination and research programme that will stimulate minds across the Eastern Cape, South Africa and abroad.
Enable social cohesion through access to the experience by multi-age, multi-cultural and multi-economic groups from the Bay and the Eastern Cape.
The Bayworld and Happy Valley programme consists of 13 catalytic capital projects that cut across the heritage, science, environmental, conservation, tourism, educational, industrial, recreational and housing sectors.
This project utilises the Quadruple Helix model and aims to deliver:
A conservative R2.2-billion of investment.
Potentially 4 239 temporary jobs during the construction phase.
Potentially 806 permanent job opportunities during the operational phase.
A potential contribution to GDP of R1.5-billion per annum.
With a little help from Zimele, small civils and road construction company based in Alldays, Mmamoruanare Construction Projects, has seen its fortunes soar over the past year.
Director, Peter Sello Kobe, founded the company in 2010 when he began to explore the world of construction and to pursue his passion. He then applied for a SMME Development Programme through
Hillary Construction (Pty) Ltd, which assisted with sub-contracts in various major projects.
Last year, the company was awarded a three-year contract for the repair and maintenance of both the D2692 and R521 roads that connect Alldays to Musina. The supplier, who had previously been providing
construction services on an ad-hoc basis to contractors at Venetia Mine, has now successfully completed all projects on schedule and according to agreed quality standards, which has – in turn – earned him a
36-month contract.
In contributing to local employment, the supplier has provided full-time employment opportunities to 24 people from our local communities. Mmamoruanare Construction also received financial support in a form of a soft loan in order to assist with buying a brand new vehicle, machinery such as concrete mixer, concrete cutter, a double drum roller and a rollmac trailer.
In commenting about what the loan means for him, Kobe said, “I am incredibly relieved because I will no longer have to spend a lot of money on hiring equipment and machines. Now that I have my own assets, I am able to save some money – all thanks to Venetia Mine”.
Kobe continues to receive mentorship through the De Beers Supplier Development programme, which enables him to manage his business efficiently and sustainably.
The Port of Cape Town (Credit: Transnet National Ports Authority)
The status of South Africa’s port terminals is an obstacle to economic recovery during the Covid-19 pandemic. Vinpro therefore welcomes President Ramaphosa’s announcement that the national ports authority will become an independent affiliate of Transnet.
This would entail a clear separation between the roles of the infrastructure owner, the Transnet National Ports Authority, the terminal’s management and Transnet’s Port Terminals. It means that all the entities will now operate more independently and more efficiently, with the added advantage that the private sector can work together and join hands with government to put this vision into practice.
“We are especially optimistic that the revenue that will be generated would be utilised to reinvest in the port infrastructure, the replacement of old equipment and the renewal and expansion of the ports, as well as working capital,” says Vinpro MD Rico Basson.
The Cape Town port is of strategic importance to the wine industry and is one of the busiest international shipping routes. South African wine exports represent almost half of its total production and amounted to 330.2 million litres in the year ended 28 February 2021, representing a 6% growth in volume year on year. Of these exports, 41% are packaged wine and 59% bulk wine. The United Kingdom, Germany, the Netherlands, the USA and Sweden are the top 5 markets for South African wine, with a total export value of approximately R9-billion, the second highest of any SA agricultural product.
“However, the wine industry is still experiencing various operational challenges at the Cape Town port – not only with exports, but also the import and unloading of packaging materials such as wine bottles for the current season. We cannot afford any delay as it would have a ripple effect on the distribution of the 2021 harvest, as well as the export of wine, which especially has to be prioritised now during the Northern Hemisphere’s summer months.”
A lack of equipment and manpower, delays due to bad weather, congestion as a result of inefficiencies and the fact that container vessels are passing the port as it is not functioning optimally are some of the strategic challenges that the South African wine industry is currently experiencing in terms of exports.
Vinpro actively collaborates with other agricultural industries and representative bodies such as AgriSA and Agbiz, and continuously engages with the Ministers of Agriculture, Transport and Public Enterprises, the Western Cape government as well as the management of Transnet regarding the problems with the import and export of wine and other agricultural products.
“For the wine industry to recover and grow, it is important in the short term that operational activities at the port should remain as optimal and efficient as possible. Structures should therefore be implemented and maintained to ensure that these activities run smoothly. In the long term, we would like to see effective investment in new equipment, as well as the renewal and expansion of our port. An effective and fully operational port is essential to grow the economy of the country and create new jobs. ”
Prof Philippe Burger (Vice Dean in the Faculty of Economic and Management Sciences, UFS) and Mr Busani Ncgaweni (Principal, NSG)
The University of the Free State Business School has been appointed as a service provider to the National School of Government (NSG) to provide education, training and development programmes to the public sector for a period of five years.
The UFS was one of ten South African Higher Education Institutions (HEIs) selected to perform the functions, the objective of which is to expand the skills base of the public sector in line with government’s commitment to create a capable, ethical and developmental public service.
Prof Philippe Burger, Vice Dean (Strategic Projects) in the Faculty of Economic and Management Sciences joined Mr. Busani Ncgaweni, Principal of the National School of Government and senior executives of ten HEIs at the signing ceremony in Pretoria on 3 June 2021 to seal the partnership with the UFS and the NSG.
“The University of the Free State, and in particular the UFS Business School, takes pride in establishing a partnership with the National School of Government (NSG),” says Prof Burger. The aim of this partnership is the professionalisation of the civil service through a number of activities. These include the UFS presenting Short Learning Programmes that will assist NSG in its aim to create a capable state in line with the objectives of the National Development Plan.
Prof Philippe Burger at the NSG signing ceremony in Pretoria, 3 June 2021.
A call for partnership with Higher Education Institutions (HEIs) was issued in 2020 by the NSG through an open bid process, followed by the successful selection of ten institutions that met the criteria to perform the education, training and development functions. The institutions will be appointed from time-to-time for specific projects.
The UFS joins Fort Hare University, Nelson Mandela University, University of Pretoria, Tshwane University of Technology, University of Johannesburg, Rhodes Business School, Durban University of technology, Stellenbosch University and North West University to partner with the NSG.
The partnership will make public servants and employees of all organs of state eligible to enroll for programmes on a cost recovery basis. The partnership will allow for the expansion of the scope of professional development for public sector employees and leaders, and in some cases help participants with the recognition of prior learning whilst also opening opportunities for further study in relevant fields.
Some of the key deliverables of the partnership will be the development and review of curriculum in various areas related to public sector performance and development, quality assurance and joint certification of programmes. The partnership will also entail the co-development and delivery of NSG programmes and undertaking research projects with the NSG as well as the provision of coaching and mentoring services to various levels of public sector officials.
FAR UVC Africa has announced that it has received certification from the CSIR (Council for Scientific and Industrial Research) for its ground breaking Far-UVC sanitation lighting technology system, to destroy Corona Virus.
Due to the nature of Covid-19, it has proven difficult to manage the spread of the virus in South Africa, and some of the most effective counter-measures are to sanitise, wear masks and socially distance where COVID cases are found.
“Our technology offers a one-of-a-kind real time air and surface sanitation solution. No other product is able to effectively kill SARS-Cov-2 and all other pathogens and bacteria, in the air and on surfaces of occupied spaces with the speed and effectiveness of Far-UVC. Far-UVC light, unlike UV-C light, does not penetrate the skin or eyes, making it 100% safe for humans and animals alike.” says Conrad Kullmann, Managing Director of FAR UVC Africa.
Far-UVC is a technological breakthrough product that causes a physical distraction of viral, bacterial, and fungal cells in a matter of seconds. It is the first of its kind to provide practical and effective countermeasures that are animal and human safe to fight off infectious diseases and pathogens in occupied spaces.
Designed and assembled in South Africa, for the South African market, Far-UVC uses an imported built-in technology that has been used for many years by the healthcare industry to destroy superbugs in hospitals.
Adds Kullmann, “We are determined to help curb the spread of the CoronaVirus by distributing the Far-UVC lighting technology and finding ways to provide a ‘safe zone’ in public and private spaces where the South African public cannot avoid going.”
This technology offers a low maintenance long term sanitisation solution for business and intimate or enclosed public spaces including hospitals, health care centres and healthcare transportation as well as the transportation industry as a whole.
“We cannot deny that Covid-19 has caused tremendous strain and pressure on the healthcare and transportation industry because it is not always possible to socially distance in medical centres, inside healthcare vehicles, buses, taxis and trains; and the amount of ventilation available is not always sufficient to exterminate viruses, and airborne viruses still continue to be spread,” says Kullmann.
Far-UVC lighting provides a safe and effective alternative solution to mitigate virus transmission in such settings.
“By using Far-UVC light sanitising technology, it’s possible to disinfect the whole body within eight seconds. while providing everyone with the peace of mind, of knowing that they are safe and protected,” concludes Kullmann.
FAR UVC Africa provides a finance plan for retailers and business owners who are interested in turning their places of business into a Covid-19 safe zone.
To learn more about FAR UVC Africa, please visit the company website: www.faruvcafrica.com
With winter just around the corner, many businesses will be going into the low season. This means fewer customers, therefore, less revenue. The trick to not just surviving this period, but making it work to your advantage, is to have a plan for managing your cash flow as well as using the time to prepare for future success.
With this in mind, we’ve put together four tips for businesses to manage through their quiet months:
Stick to a plan
Take advantage of the downtime
Plan for the busy season ahead
Learn and learn again
1. Stick to a plan
Low seasons come around every year and should not take you by surprise. Every successful business should have a plan in place, much like they’d have a plan for the busy season. To start, don’t base your slowest season’s plans on your busiest season’s results. It won’t take long for this type of planning to cause serious problems for your business finances.
Your plan should anticipate seasonal fluctuations and adjust accordingly. If revenue is lower, you will need to cut costs.
Potential areas for seasonal cost savings include:
Fewer operating hours
Reduced workforce
Fewer or smaller inventory buys
In addition to cutting costs, consider where you can leverage existing assets to generate income.
You could leverage assets by:
Selling off excess or aging inventory at a discount
Securing a line of credit against inventory, equipment, and property
The slow season is the one period of the year when you have time to focus on areas you may ordinarily not have time for. As you get close to the slow season, prepare yourself to take advantage of the time it provides.
Plan to Plan
The slow season is a great time to develop roadmaps for your business. Now is the time to determine what aspects of your business need attention. Think about how you can best prepare your business for the uptick in customers, transactions, complaints, and everything else that comes with the busy season. Be prepared to plan for these busy season realities as the slow season arrives.
Here are some common areas that often go overlooked as you grow your business:
Employee benefit packages
Updated business plans
Marketing strategies
Organizational roadmaps
Areas that deserve your attention vary depending on your business’ industry, maturity, growth, and other unique factors. The best way to prepare for your slow-season planning is to identify areas that deserve your attention.
Take control of administrative tasks
Before the slow season begins, identify administrative tasks that need your attention.
Your administrative tasks will vary depending on the nature and stage of your business. But, there are some common administrative tasks that many business owners avoid during the busy season because they are either too time consuming or boring:
Tax strategy
Staff growth and outsourcing needs
Internal policies and procedures development
Whether you have neglected these tasks in the past, or you simply need a good chunk of time to get these tasks completed, be ready to knock them out when the slow season provides time.
3. Plan for the busy season ahead
Once the busy season arrives, it’s too late to prepare for it. The slow season is a perfect time to ensure that you make the preparations and adjustments needed to hit the ground running when the busy season comes back around.
Train Employees
All employees benefit from training, but finding time to train isn’t easy. During the slow season, you have the time to offer training options that meet your employees’ needs. Newer employees may need some basic onboarding training. Your more seasoned employees likely need more advanced training to improve their skills. Identify the training needed across your workforce, and plan that training before the slow season hits.
Inventory Strategy
The slow season is a good time to dive into your inventory strategy, if it’s relevant to your business. The goal of an effective inventory strategy is to identify the most effective and profitable inventory method for your business. While the slow season is the time to conduct an inventory analysis, you must develop a plan beforehand that will serve as your roadmap to execute this.
Here are some common metrics and processes to consider when reviewing your inventory practices:
Inventory turns
Average shipping time
Cost of inventory
Volume discounts
Fill rate
Shipping accuracy
The list above is a starting point for analyzing your inventory practices. Before the slow season arrives, determine which metrics make sense to review when the slow season gives you a window of time to do so.
During the busy season, track the metrics applicable to your inventory strategy to ensure you are ready to execute your review when the low season arrives. An effective inventory strategy will be unique to your business.
Investing in a Customer Relationship Management (CRM) system can be one of the most effective means to increasing customer engagement and retention for an SME. A CRM solution enables a business to efficiently collect a wealth of data on its customers’ behaviours and preferences, and then quickly respond to these via personalised communications. CRM tools can also play a vital role in aligning a business’s Marketing and Sales activities.
Let’s have a look at 4 reasons why your SME should consider investing in CRM software to grow your business:
A single view of the customer
Real-time data access
Nurture leads with optimized user journeys
Track your KPI’s (Key Performance Indicators)
A single view of the customer
A CRM platform allows a business to collate all of the data it holds on a customer, including previous purchases and interactions with the customer service team, in one place. This can then easily be viewed and acted upon by internal teams. The more you know about your customer, the easier it is to meet their future needs. Having a complete overview of all your customers also helps a business to segment its customer base and develop different strategies for each.
Real-time data access
The real-time data collection and analysis most CRM tools offer enables companies to gather information on prospects or clients straight away. You get actionable information on who is visiting the website and which content they are viewing. You will see which emails they are opening or clicking on, as well as which forms they have filled out.
You will also learn about their preferences, which goods and services they buy, and how to upsell to them. By capturing behavioral data CRM tools allow you to engage in a more personalized manner.
96% of people aren’t ready to buy from you the first time they visit your website.
The same can be said for a trade show, networking gathering, or company conference. Rather than launching your sales pitch straight away, it is important to get to know your prospects and engage with them on a more personalized basis. This is conveniently accomplished by developing lead nurture journeys using a CRM platform.
As an example: email addresses can be collected via a form on your website. When this occurs, a sequence of automated email messages can be triggered. Each message can share more about your products and services, while also being tailored to any subsequent actions the lead completes (such as downloading additional product guides).
This prompt, and customised way of following up with leads, can significantly increase conversion rates.
Track your KPI’s (Key Performance Indicators)
CRM tools can help you answer crucial business questions, such as:
Which marketing strategies are the most effective? E.g. Paid Search, SEO, or word-of-mouth?
Which methods of customer service do your customers prefer, such as do you need a live chat or phone support?
Which customer segments are most profitable?
A CRM tool provides real-time filtering and monitoring, allowing you to understand important performance drivers such as:
Which sources your new marketing leads are coming from
Effectiveness of the sales conversion funnel
The efficiency of your customer service team in handling queries
A CRM system can be the missing link for small companies looking to get closer to their clients,
Here are three of the most common CRM tools SMEs can consider:
Hubspot – assign your customers to specified stages of the sales funnel where you can personalize their user experience with your business through content and marketing material.
Salesforce – ensures trouble-free contact management by providing access to important customer details and relationship history. It provides a full description of the client, with insights and engagement-enhancement techniques.
Freshworks – designed to help sales teams never fall behind with built-in phone and email, robust insights such as lead scoring, website monitoring, and intelligent workflows.
A CRM system can be the missing link for small companies looking to get closer to their clients, generate more leads, and increase revenue. Customer Relationship Management solutions provide you with the data and knowledge you need to automate your processes and improve your customer experience.
Shutdown at Air Products’ air separation unit (ASU) at Sasol.
Air Products is known for their ability to provide a secure supply of industrial gas to customers. Maintaining a high standard with regards to service delivery and customer service is largely the result of planning and executing continuous maintenance on different ASU’s. Performing shutdowns and placing a strong focus on safety during this process, has become an integral part of the company’s success. Plant shutdowns are a critical activity that needs to be performed at specific intervals to ensure the optimal use of equipment, operational efficiency and most importantly, to secure a safe work environment for Air Products and customer’s employees.
As a market leader, Air Products is familiar with the planning and execution required for a successful shutdown, however the added responsibility to ensure safe work practices during COVID-19 has added another dimension to a process that is already extremely complex and time sensitive. Air Products has completed a major shutdown at the Sasol Facility in Sasolburg in March 2021 and is extremely proud of the on-time zero incident and successful execution.
In addition, the company reported zero COVID-19 infections despite having a team of more than 270 individuals forming part of the process.
Air Products’ success in this most recent shutdown at Sasol, which formed part of one of their biggest maintenance shutdowns, is largely as the result of strategic planning and the quality of the local team’s skills and expertise.
Dumisa Gina, General Manager – Operations
Keeping gas flowing to customers
As customers are reliant on Air Products’ gases to keep their operations going, it is important to ensure that the customers agree with the process and are constantly updated on the project status.
According to General Manager – Operations, Dumisa Gina, most of the Air Products plants are linked to customer supplies, and for that reason a process has been developed over the years that mainly focuses on the customer’s operations. “When we do a shutdown, communication with the customer is crucial and our team ensure that all parties agree on the timelines and have their planning in place to manage during the shutdown period. In this situation the customer becomes the most critical player on our team”.
Elements in the shutdown process
Area Production Manager, Chris Schoeman, explains that each shutdown is unique based on the size of the specific plant, the products manufactured and the challenges associated with each. However, the basic elements in the shutdown process such as safety, planning, costs and quality remains the same and forms the basis of any shutdown. “As long as these elements are all aligned, the project will succeed.”
This year, with the current COVID-19 pandemic, another important element was added – a contingency plan had to be developed to make provisions for COVID-19 infections. In effect, this meant that regular safety protocols as well as Air Products and the customer’s COVID-19 protocols had to be followed to create a safe work environment for all.
A delicate mix of planning, expertise and teamwork
The team involved in a shutdown generally consists of experienced individuals from disciplines such as engineering and maintenance. The planning, which took approximately two years, and the 20-day execution is conducted by experienced engineers and a maintenance team with skills required to complete all the aspects of a shutdown. It is important for the management team to ensure that the execution plan is clearly understood and followed by all parties involved, within the set timeline and by following all the necessary safety protocols.
Chris Schoeman, Area Production Manager
In essence, it is a collaboration of efforts and skills from the maintenance, operations and projects teams that ensures a successful shutdown. During a project of this nature, it is crucial that there is good communication, understanding and interaction between the teams to ensure each one’s role is performed in accordance with the project plan. Contractors are generally also part of a shutdown and usually fulfill specialised roles.
Dumisa Gina further explains that contractors play an important role during the shutdown: “Although Air Products consists of an experienced team, we need more hands when it comes to specific skill sets and utilising the expertise of contractors definitely adds to the overall strength of a shutdown team. Having said that, it also requires a special focus as they need to also understand the project at hand and have the same commitment as the rest of the other team members.
More importantly, the contractors need to be familiar with all the general safety standards and protocols as well as the additional protocols that is needed to be maintained to prevent the spread of COVID-19 infections”.
According to Chris Schoeman any shutdown project requires focus, dedication and commitment from all parties involved. “I am really humbled by this team – a shutdown is always a challenge, but they worked like true professionals and went to extra mile to adhere to the additional COVID-19 protocols”.
Dumisa Gina concludes: “At Air Products, we pride ourselves in our ability to provide an outstanding service, but we have a very important new learning from our last shutdown – using and having proven processes in place, we had a solid base to work from and were able to absorb additional challenges such as keeping all safe during a pandemic”.
Digital Transformation refers to the overall change of organisational activities aimed at leveraging opportunities created by digital technologies and data. This requires companies to profoundly transform their business models, infrastructure, processes and culture, in order to steer them toward finding new sources of customer value.
The use of digital technologies has transformed commerce and how businesses interact with their customers. To adapt to this changing world, organisations must embrace digitisation.
“For small businesses just getting started, there’s no value in setting up your business processes and transforming them later. You can futureproof your organisation from the get-go. Thinking, planning and building digitally sets you up to be agile, flexible and ready to grow,” says Trevor Gosling, CEO of small business service provider, Lulalend.
Equally so, Gosling says that SMEs can transform their business model to increase productivity and profitability. “This could mean replacing manual processes with digital ones or upgrading existing digital resources or systems with newer, more capable ones.”
SME owners should consider crafting a winning digital strategy through ensuring top to bottom support. Since digital transformation is a large undertaking that impacts any aspect of the enterprise, it is impossible to execute a plan without the buy-in and alignment of all the main stakeholders in the organisation.
For small businesses just getting started, there’s no value in setting up your business processes and transforming them later. You can futureproof your organisation from the get-go.
While most companies have been moving online over the past few years, digital transition is not a one-time event. It is a continuous approach to how business is conducted that can affect all aspects of the organisation.
“SMEs need to understand how much capital they want, and can afford, to invest in a project. Your budget will help you define the scope, timing and phasing of your strategy,” says Gosling.
To do this, it will require business owners to critically evaluate their digital objectives, what they intend to accomplish, as well as defining the kind of experience they would like to offer to their clients and employees. “Try to keep the long game in mind when you consider these issues. The aim of a digital transition is to help your business achieve its long-term goals. Your vision should be optimistic and positive,” he explains.
In addition, having access to data is critical to achieving transformation objectives. Companies who exploit their data and operate on it easily gain an advantage over their competitors. An even more significant strategic advantage is developing the ability to collect useful data, convert the data into concrete observations, and, most importantly, act on those insights.
According to Gosling, data without insights and insights without intervention are meaningless. The pandemic has shifted digital transformation into an overdrive. Gosling says that there is no turning back. “People have now gotten used to living in a digital world.”
The growing pressure of digital competition has compelled long-established companies to rethink their marketing strategies. It is important for businesses to recognise that digital innovation influences various sectors in several ways. It provides extraordinary opportunities to follow new market models.
The latest guide in our Business High Five series, The SME Guide to Digital Transformation, offers useful guidance on how to introduce digital technology to help your business succeed.
The South African wine industry expects exceptional wines from the 2021 wine grape crop. (Photo credit: Simoné René Nel, Piekenierskloof Wines).
Wine lovers from across the globe can enjoy outstanding wines from a much cooler and later 2021 wine grape season in South Africa. This according to the annual South African Wine Harvest Report 2021.
“It seems as though the vines really took their time to prepare this year’s harvest,” says Conrad Schutte, consultation service manager of the wine industry body Vinpro. “Moderate weather throughout the season, and specifically during harvest time, resulted in grapes ripening slower, while developing exceptional colour and flavour.”
The 2021 wine grape crop is estimated at 1 461 599 tonnes, according to the latest estimate of industry body SAWIS (South African Wine Industry Information & Systems) on 19 May 2021. It is 8.9% larger than the 2020 harvest.
The harvest kicked off around two weeks later than normal due to unusually cool weather conditions throughout the season, which persisted throughout harvest time and resulted in some wine grape producers harvesting their last grapes in May. Water resources were also replenished in most regions following the recent drought, which contributed to good vine growth, bunch numbers and berry sizes.
“Although these are general observations, it is always important to take the South Africa wine industry’s diversity over ten wine grape growing regions into account,” Conrad says.
Remarkable wines
“The late and slow harvest was definitely worth the wait. Wine lovers can really look forward to remarkable wines from the 2021 crop,” Conrad says. “The cooler weather enabled producers to harvest their grapes at exactly the right time, and viticulturists and winemakers are especially excited about good colour extraction, low pH levels and high natural acidity in cases where vineyards were managed effectively, which all point to exceptional quality wines.
The 2021 wine harvest – including juice and concentrate for non-alcoholic purposes, wine for brandy and distilling wine – is expected to amount to 1 136.4 million litres at an average recovery of 778 litres per ton of grapes.
“We are delighted that harvest 2021 has proven to be somewhat of a silver lining for the South African wine industry, which will no doubt further bolster our international positioning,” says Siobhan Thompson, CEO of Wines of South Africa (WoSA). “What stands out above all else is the consistency in quality that we have come to see over recent years. This will go a long way to convincing those who may still have been on the fence and reinforce our overall standing alongside our international competitors. It is also very promising to note that the volume and value of wine exports from South Africa are higher compared to the year on year figures in 2020 and 2019.”
South Africa is the ninth biggest wine producer world-wide and produces about 4% of the world’s wine. The wine industry contributes more than R55 billion to the country’s gross domestic product (GDP) and employs 269 069 people throughout the value-chain, of which 80 183 work on farms and in cellars.
Strike a balance
Intermittent restrictions on the export and local sale of alcohol in South Africa from March 2020 to February 2021 as part of the country’s national state of disaster resulted in 650 million litres of wine stock at the end of 2020, of which a large portion was not yet contracted.
“With so much stock still in the tanks at the beginning of harvest time, producers and wineries were concerned about processing and storage capacity when taking in the new harvest, many of whom rented additional storage space or restored old tanks,” says Rico Basson, Vinpro MD. “However, the fact that sales reopened, along with the harvest starting later than normal, helped ease the pressure to some extent.” A number of wineries were also able to secure contracts with grape juice manufacturers, which helped work away some of the stock.
“The larger wine grape crop will require careful planning from producers and wineries to sell the current wine stock in a responsible and sustainable way. This situation will, however, also create the opportunity for innovation and growth of existing and new markets,” Rico says.
The weather was moderate in most regions during the post-harvest period, which led to leaves falling later than normal and vines building up good reserves. Producers also had access to sufficient water for post-harvest irrigation.
Winter was colder than the previous season, with much higher rainfall, which replenished water resources and led to sufficient cold accumulation to break dormancy.
The cold and wet weather continued into spring, which contributed to homogenous, but delayed bud-break and initial growth. In the coastal region, however, the wetter conditions made the timing of disease control more challenging.
Frost damage occurred in some irrigation areas and it was expected that significant frost damage in the lower lying areas of the Northern Cape and strong winds in the Cape South Coast region would have a notable effect on these crops. Fortunately, the frost and wind occurred at an early enough developmental stage for vines to recover.
Flowering and set was mostly efficient and even, while shoot and leaf growth picked up the pace by the start of November, which necessitated additional inputs from producers to manage the fast and vigorous growth.
Temperatures remained moderate during the summer, which slowed down ripening and resulted in harvest time starting out around two weeks later than normal. Although most wine regions experienced little rainfall during harvest time, there were also almost no characteristic heat-waves, and the lower day and night temperatures throughout the season led to producers waiting patiently for grapes to reach optimum ripeness.
Overview of regions
Breedekloof
A very late season, characterised by a good balance between yield and quality, as vines developed healthy canopies during a moderate growing season.
Cape South Coast
Challenging weather conditions led to a smaller crop, but enabled producers to truly make cool climate wines of exceptional quality.
Klein Karoo
Moderate weather conditions, good water availability and sufficient winter rainfall in certain areas resulted in a larger crop and great quality, although drought conditions still persist in some parts of the region, placing wine grape producers under great pressure.
Northern Cape
A good wine grape crop in terms of quality and volume, despite challenges in terms of sugar accumulation and load shedding during the peak of harvest time.
Olifants River
A later and cooler season resulted in slow, but even ripening of a somewhat larger and outstanding quality wine grape crop.
Paarl
Good water availability, sufficient reserves and cooler weather contributed to yields equal to that of 2020, which will result in elegant wines.
Robertson
Although it was a long and extended season, the vineyards realised a higher, exceptional quality yield.
Stellenbosch
A smaller crop, but outstanding quality grapes, resulting in great wines with good ageing potential.
Swartland
Consumers can look forward to exceptional wines from this year’s crop, following moderate weather conditions and slow ripening.
Worcester
One of the latest harvests recorded in this region, bringing with it a larger wine grape crop and remarkable wines.
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11 months
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In contributing to local employment, the supplier has provided full-time employment opportunities to 24 people from our local communities. Mmamoruanare Construction also received financial support in a form of a soft loan in order to assist with buying a brand new vehicle, machinery such as concrete mixer, concrete cutter, a double drum roller and a rollmac trailer.
